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Dotdigital reports double-digit growth

The marketing automation group's turnover was up by 15 per cent
February 25, 2020

Dotdigital (DOTD) reported continuing revenue growth in line with guidance issued in January, with 90 per cent attributable to recurring custom. International organic sales were up by a third to £7.9m, while the adjusted cash margin also increased through the period. 

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The marketing automation group aims to improve its clients’ customer engagement through data-led, personalised campaigns. It is true that there are already global providers in e-commerce and customer relationship management (CRM) software who have the dominant market share, but for chief executive Milan Patel the focus is on strategic partnering so that dotDigital can enhance its clients’ value proposition, as well as raise brand awareness.  

The group has continued to progress these relationships with strategic partners, with sales via these channels up by 4 per cent to £10.7m. “In the last six months we’ve not only deepened our relationships with the likes of Magento, Shopify and big commerce, but we’re also increasing the addressable market we go after through the integration that we have with Microsoft Dynamics in the CRM space,” added Mr Patel. 

Peel Hunt forecasts adjusted pre-tax profits of £13m and EPS of 3.9p for the year to June 2020, compared with £11.8m and 3.9p in FY2019.

DOTDIGITAL (DOTD)   
ORD PRICE:110pMARKET VALUE:£328m
TOUCH:108-112p12-MONTH HIGH:116pLOW: 85p
DIVIDEND YIELD:0.6%PE RATIO:32
NET ASSET VALUE:15p*NET CASH:£17.2m †
Half-year to 31 DecTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
2018**20.14.691.35nil
201923.16.531.90nil
% change+15+39+41-
Ex-div:na   
Payment:na   
*Includes intangible assets of £22.4m, or 7.5p a share. **Restated. †Includes lease liabilities of £5.34m.